MicroStrategy Play By Play Book For Corporations To Get Into Bitcoin

MicroStrategy just gave a conference to all the biggest companies in the world. They expected about 1,000 people to attend and instead 8,000 showed up, representing 6,917 companies. And 22,000 people were interested.

At the conference Michael Saylor went through how their company has bought over a billion dollars worth of Bitcoin last year. They also made more money last year in Bitcoin than in the 20 year history of the company. MicroStrategy is putting all of there cash reserves into Bitcoin from this point on and even going further and leveraging loans to purchase more Bitcoin because with the interest rates they can pay off the loans with new money and the Bitcoin is blowing today’s interest rates out of the water.

They talk about how Bitcoin has been going up on average of 200% per year. And that the US treasury has basically said they are going to keep the printing presses running full speed ahead debasing cash.

Tom Wards goes on to say that Bitcoin isn’t considered a security. They say that the SEC has said that certain networks such as Bitcoin are sufficiently decentralized and thus don’t need a company to back the initial investments to get the network off the ground. There also isn’t an expectation by anyone to be able to go to a company if there is an issue. Other coins are considered securities though that are not sufficiently decentralized. Under the SECs current tests Bitcoin is not a security. It means that MicroStrategy is not and investment company or an ETF.

Bitcoin is an intangible asset.

“An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.”

Topics they go through: